Failing Health Care Co-ops Will Cost Taxpayers

Consumer Operated and Oriented Plan Programs (COOPs) were really a political compromise between Members of Congress who wanted a public plan option and those who didn’t. Once the Affordable Care Act passed, COOPs had outlived their usefulness. However, they are now failing and will cost taxpayers plenty. Senior Fellow Devon Herrick testified before a congressional committee.

Insuring the Uninsured

The federal government currently subsidizes the employer-provided health insurance of middle- and upper-income workers by about $100 billion a year. By contrast, low-income workers often do not have employer-provided health coverage, and thus get neither the insurance nor the tax break. If they buy insurance on their own, they pay with aftertax dollars.